The beginning inventory of merchandise at Dunne Co. and data on purchases and sales for a three-month period ending June 30 are as follows:

DateTransactionNumber

of UnitsPer UnitTotalApr. 3Inventory36$225$8,1008Purchase7227019,44011Sale4875036,00030Sale3075022,500May 8Purchase6030018,00010Sale3675027,00019Sale1875013,50028Purchase6033019,800June 5Sale3679028,44016Sale4879037,92021Purchase10836038,88028Sale5479042,660

Required:

1.Record the inventory, purchases, and cost of merchandise sold data in a perpetual inventory record similar to the one illustrated inExhibit 3, using the first-in, first-out method. Under FIFO, if units are in inventory at two different costs, enter the units with the LOWER unit cost first in the Cost of Merchandise Sold Unit Cost column and in the Inventory Unit Cost column.

Dunne Co.

Schedule of Cost of Merchandise Sold

FIFO Method

For the three-months ended June 30PurchasesCost of Merchandise SoldInventoryDateQuantityUnit CostTotal CostQuantityUnit CostTotal CostQuantityUnit CostTotal Cost

Apr. 3$$

Apr. 8 $$

Apr. 11$$

Apr. 30

May 8

May 10

May 19

May 28

June 5

June 16

June 21

June 28

June 30 Balances$$

2.Determine the total sales and the total cost of merchandise sold for the period. Journalize the entries in the sales and cost of merchandise sold accounts. Assume that all sales were on account.

Record sale

Record cost

3.Determine the gross profit from sales for the period.

$

4.Determine the ending inventory cost as of June 30.

$

5.Based upon the preceding data, would you expect the inventory using thelast-in, first-out methodto be higher or lower?